More Canadians participating in the second-hand economy

Nearly 85% of Canadians are buying or selling second-hand goods, says online classifieds site Kijiji.

The second-annual Second-Hand Economy Index, co-authored by University of Victoria professor Lindsay Tedds, examines the economic impact of second-hand practices in Canada.

Key findings from the report include:

· Nearly 85% of Canadians have participated in some form of second-hand transactions in the last year. · Last year, Canadians saved an average of $480 each by buying second-hand goods instead of new goods. · Each Canadian spent an average of $960 on second-hand items and earned an average of $883 · Of those who buy second-hand goods, 77% are driven by the prospect of saving money.

More Canadians are turning to the non-traditional avenues of making and saving money, known collectively as the sharing economy. Aside from online classifieds sites, there’s also swap groups, online businesses, ride sharing and apartment sharing.

Advisor’s Jessica Bruno explores how all these new sources of income impact income taxes.

“Your client can deduct a portion of the rent or property tax she pays on a home she rents out through a home-sharing website as a business expense, says accountant Colleen Gibb. The amount must be pro-rated to reflect the business use of the home.”

Read more here.

Also read:

Getting by in the sharing economy

Sharing economy is changing how Canadians spend

Millennials prioritize retirement savings

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.